1099 Repeal Bill Signed into Law
Big "I" applauds repeal of onerous reporting requirement.
The Independent Insurance Agents & Brokers of America (IIABA or the Big "I") praised President Barack Obama for signing H.R. 4, the "Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011" into law.
"The Big 'I' is grateful to President Obama for signing this important bill into law," says Robert Rusbuldt, Big "I" president and CEO. "In a strong show of bipartisan cooperation, the president and Congress have done the right thing by standing up for small businesses and repealing the 1099 reporting mandate. Our thousands of small business members and their clients will breathe easier knowing this ill-advised provision will not take effect."
The 1099 reporting mandate was originally passed last year as part of the Patient Protection and Affordable Care Act as a way to partially offset its cost. It was intended to increase tax compliance by requiring businesses to file a 1099 for all business-to-business transactions for goods or services totally over $600 cumulatively over the tax year. Repeal of this mandate enjoyed widespread bipartisan support in both legislative bodies but struggled with how to offset the lost revenue. H.R. 4 passed the Senate April 5 in an 87-12 vote and the House on March 3, 2011 in a 314-112 vote.
"Without President Obama's signature, this burdensome mandate would have created a mountain of paperwork for small businesses and diverted precious resources away from business expansion and job growth," says Charles Symington, Big "I" senior vice president of government affairs. "Since the health care law was signed into law, the Big 'I' has made 1099 repeal a top legislative priority and was pleased to see these efforts and those of thousands of small business people come to fruition."